Flat Dollar

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DEFINITION of 'Flat Dollar'

A fixed dollar amount, generally in the context of fees or commissions paid for services. For transactions above a certain minimum size, flat dollar fees may be preferable to fees charged on a percentage basis. Flat dollar amounts are usually specified in contracts and thus are independent of transaction sizes.

BREAKING DOWN 'Flat Dollar'

Flat dollar fees on stock transactions charged by online brokerages have made it much more economical for the average retail investor to trade stocks. For most services, cost-conscious consumers combined with companies competing for their business will usually cause flat dollar fees to replace fees based on a percentage of the transaction's value.

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RELATED FAQS
  1. Where do I look for fees that I am charged on investments? What are those fees called?

    The fees and expenses charged for investments vary. The fees usually depend on the type of investment and the investment ... Read Full Answer >>
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    First off, understand that there is no universal system regarding trading commissions charged by brokerage firms. Some charge ... Read Full Answer >>
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    The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b-1 fees are used, or ... Read Full Answer >>
  4. What is the interest rate offered on a typical margin account?

    Interest rates on margin accounts vary according to the size of the loan and the brokerage firm being used. Generally, interest ... Read Full Answer >>
  5. What is the cost of a share purchase?

    When investors purchase shares of stock, the price paid includes two components: the price of the stock and the fee charged ... Read Full Answer >>
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